Humana 2006 Annual Report Download - page 10

8 Annual Report 2006
10. Balance scale with innovation. Size is
important to enable meaningful technology
investment. But nimble thinking is critical
too. If size were the only determinant of
success, the industry wouldn’t be in need
of fundamental, consumer-oriented reform,
since some health insurers have enjoyed large
scale for some time.
What these imperatives add up to is that success
will come to companies that think boldly (in
terms of vision and solutions), change quickly
(by exploring adjacencies, fostering integration
and acting on insights) and make data work
harder – for consumers, and thus for themselves.
Humana’s recent transformative growth, and our
experience applying many of these imperatives in
our consumer approach to Medicare expansion,
position us well for this kind of success.
Summary
To sum up, Humana has become a leader
in our industry. We’re at the forefront of
consumerism and transparency – related industry
“megatrends” that are both gaining momentum.
We’re forecasting another year of record
revenues and earnings; if we achieve only the
low end of our projections, we will have nearly
doubled in revenues in two years and more than
doubled in net income. We’re expanding our
guidance skills to embrace new services designed
to create long-term profi table relationships with
our growing health plan membership base.
Such leadership is especially important in the
context of renewed national interest in health
reform. Humana, our trade association and the
business groups we belong to all believe that
every American should have access to affordable
health care coverage. We further believe that
fi rst priority should be given to covering all
children and making our health care system more
effi cient and effective. We’ve long been a partner
with government in Medicare, Medicaid and
TRICARE, and we believe that whatever direction
health reform ultimately takes, our successful
experience – combined with our commitment to
consumerism and innovation – will stand us in
good stead.
As you think about Humana’s future, we invite
you to bear in mind the following essentials:
• We have transformed ourselves into a
company with a nationwide presence
and brand.
• We are fi rmly and successfully focused on the
imperatives necessary to be successful over
the long term.
• We are poised to achieve signifi cant growth
in revenue and earnings in our Medicare and
Commercial businesses.
• We are dedicated to reducing costs and
providing a superior health plan experience
through consumer engagement.
• We use technology to enable new products
and services, providing guidance and total
solutions for employers and consumers.
• We engage in research and development to
foster constant innovation, unexcelled service
and positive consumer behavior change.
• Our board of directors is a focused,
independent team that brings to bear a
wide spectrum of operational expertise on
Humana’s strategic direction.
Sincerely,
David A. Jones, Jr.
Chairman of the Board
Signifi cant Stockholder
Michael B. McCallister
Director, President and Chief Executive Offi cer
Signifi cant Stockholder
This letter contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are advised to read the accompanying Form 10-K which includes discussion of risks and uncertainties.